Coins? Small-value notes? SBI to step up with change

For those who have faced a shortage of small-value notes and coins in their wallets, the next three months could bring a change.

- Shayan Ghosh & Anshika Kayastha

India's largest lender, State Bank of India (SBI), is looking to install dozens of cash and coin dispensers by the end of June, as it leads an initiative by the government and the Reserve Bank of India (RBI) to ease access to low-denomination paper money and coins.

The state-owned lender plans to install 60 such machines in markets and other high-traffic areas where demand for change is high, according to four people familiar with the development and a document seen by Mint.

The rollout will cover branches with currency chests in cities such as Bengaluru, Pune, Amravati, Chandigarh, Vellore, and Shimla, among others. The idea is to cover 13-14 states, the person said.

"If the bank sees usage pickup at these machines, it will gradually increase the number. One has to scan the QR code through a UPI app to be able to withdraw cash," said the person. "SBI is leading the initiative, while a couple of other banks are also involved."

Bank of Baroda has already deployed two ATMs for small value notes in Mumbai and New Delhi, wherein users can withdraw cash against UPI transactions. The machines have been deployed in high footfall areas as standalone units so that users of all banks can access the facility, one of the persons cited above said.